PancakeSwap is a decentralized finance (DeFi) platform that allows users to trade cryptocurrencies and other digital assets in a decentralized and non-custodial manner. It is an automated market maker (AMM) platform that runs on the Binance Smart Chain (BSC) blockchain.
PancakeSwap is similar to other decentralized exchanges (DEXs) such as Uniswap and SushiSwap, but it operates on the Binance Smart Chain, which means that transactions are faster and cheaper compared to other blockchain networks. PancakeSwap uses liquidity pools and LP tokens to facilitate trading and rewards users for providing liquidity to the platform.
PancakeSwap also has a Non-Fungible Token (NFT) marketplace that allows users to buy, sell and trade unique digital assets on a blockchain. This feature enables creators to easily mint and sell their NFTs, while buyers can acquire rare and valuable digital collectibles.
Overall, PancakeSwap is a popular DeFi platform that provides users with an easy-to-use and cost-effective way to trade cryptocurrencies, participate in liquidity provision, and engage in NFT trading.
PancakeSwap provides its users with wide range of features like token swaps, liquidity provision & farming, perpetual trading, staking, lottery, NFT marketplace, launchpad, etc.
It’s one of the few DEXs that provides users access to a range of financial products in a single interface, offering a well-rounded DeFi experience, typically seen in centralized exchanges that work with large operational teams and financing.
According to DeFi Tracking Platform Defi Llama, PancakeSwap is now the largest DEX and DeFi application (by TVL) on the BSC network, with an estimated $3.05 billion in assets stored on the platform. PancakeSwap features its own governance token, ‘CAKE,’ which enables its users to vote on proposals and is often given to liquidity providers and stakeholders as a reward.
CAKE is PancakeSwap’s native governance token, as well as its rewards and utility token. CAKE holders can vote on governance decisions, get rebates on trading fees for perpetual futures, get access to IFOs, buy lottery tickets, etc.
CAKE’s current total supply is 315,268,578, with maximum supply of 750,000,000. CAKE currently has a market cap of $481.8 million and an emission rate of 13.75 CAKE/block.
Explore CoinStats without limitations and you’ll never want to go back.
PancakeSwap offers the following key features to its users:
Binance Bridge is a service provided by Binance, a leading cryptocurrency exchange, that enables users to transfer digital assets between different blockchain networks. Binance Bridge makes it easy for users to swap tokens from one blockchain network to another without the need for a centralized exchange or a third-party service.
The service supports various blockchain networks, including Ethereum, Binance Smart Chain, and more. Users can use Binance Bridge to swap tokens from one network to another, allowing them to take advantage of different features and functionalities offered by each network.
To use Binance Bridge, users need to connect their wallets to the service and select the tokens they want to swap. The service will then perform the swap and transfer the tokens to the designated wallet address on the target blockchain network. The fees for using Binance Bridge are relatively low compared to other cross-chain swap services.
Overall, Binance Bridge is a convenient and reliable solution for users who want to transfer tokens between different blockchain networks quickly and easily. It provides users with a decentralized and secure way to exchange digital assets, giving them more flexibility and control over their investments.
PancakeSwap has been holding on to the status of “largest DEX on the BSC chain” for so long because of its capacity to offer a wide range of financial products and services through a single interface. Most of this is feasible due to the hard work of its development team behind the scenes. PancakeSwap has extended its services from basic token swaps to an on-chain derivatives market in less than two years.
The following is a list of its current services:
Spot trading on PancakeSwap is carried out by swapping assets in a liquidity pool via an automated market maker (AMM). AMM swaps are often done live, with the price defined by the ratio of assets in the pool; users have no decisive influence over the price at which they buy or sell assets.
PancakeSwap offers solution to this problem by allowing users to pre-set orders using the limit order function on its interface. Unlike centralized exchanges, this does not imply matching one order against another. Instead, once the pre-set price objective is met, the AMM executes a swap on its liquidity pool.
However, remember that PancakeSwap doesn’t accept limit orders for tokens with a fee/tax on the ‘transfer’ of tokens. Open limit orders will stay open forever unless they are executed or canceled by users. Soon, a customizable expiration date functionality is planned.
Furthermore, as PancakeSwap is based on the BSC network, transaction speeds are substantially faster and less expensive than on Ethereum. When completing swaps on PancakeSwap, ensure to use the V2 swap, as the previous version (V1) is more prone to slippage, which results in financial loss.
Users can farm rewards in the form of CAKE tokens by supplying liquidity to PancakeSwap’s Liquidity Pools. PancakeSwap features several yield farms, which require you to stake two tokens to obtain the LP tokens associated with the specific farm. Each farm on PancakeSwap has its own yield rate and multiplier, so before supplying liquidity, ensure to know which farm you want to profit from. For example, the CAKE-BNB farm has a 40x multiplier, which means it earns 40 CAKE for every block produced.
Syrup Pools let users stake CAKE and gain rewards in the form of CAKE or other tokens. The CAKE Syrup Pool, for instance, allows users to choose between flexible and locked staking. The locked staking option offers a high APY but requires users to lock their tokens for a predetermined period. The flexible staking option provides a lower APY but lets users withdraw their tokens anytime.
PancakeSwap’s prediction market lets users earn tokens by correctly predicting the price movement of BNB-USD or CAKE-USD pairs. Users can bet on whether the price of BNB or CAKE will rise or fall in the next five minutes.
Results will be calculated, and rewards will be distributed based on the closing price at the end of the round.
Users can purchase lottery tickets for the PancakeSwap Lottery, and each ticket has a unique 6-digit combination. A random six-digit combination is generated at the end of each lottery session, which lasts between 12 – 36 hours.
Users must have tickets that match the winning combination from left to right to win. The closer your number is to the winning combination, the higher your payout.
PancakeSwap has collaborated with ApolloX Finance to allow customers to trade perpetual futures contracts using its interface. The trading infrastructure is built with off-chain order-book matching and on-chain settlement, allowing for critical trading features such as different order types (such as limit orders, stop orders, and post-only orders) while preserving privacy and security of a DEX. I.e., it doesn’t require KYC or use intermediaries when engaging with smart contracts.
Initial Farm Offering, or IFO, is a novel Initial Coin Offering (ICO) concept introduced by PancakeSwap. Users must create a “profile” on PancakeSwap to participate in an IFO. Users can then commit CAKE tokens to the IFO pool to buy the token. The number of iCAKE a user owns determines the amount of CAKE a user can commit. iCAKE is a numerical metric used to calculate the quantity of CAKE staked in the fixed-term CAKE staking pool as well as the overall staking duration of your current fixed-term staking position.
PancakeSwap is staying ahead of the competition by launching its own NFT collections and allowing users to create personalized profiles on the exchange by linking them to an NFT. PancakeSwap also has its own NFT marketplace for trading white-listed NFT collections.
NFTs can be won through team trading games, where traders compete to see who has the greatest trading volume in a period, or via PancakeSwap airdrop events.
PancakeSwap Liquidity pools are funded with users’ deposits, and in exchange for their contributions, users get Liquidity Provider (LP) tokens, also known as FLIP tokens. These LP tokens can be used to reclaim their share and a percentage of the trading fees.
PancakeSwap also allows users to farm CAKE and SYRUP tokens. Users can deposit their LP tokens on the farm to get rewarded with CAKE. CAKE tokens can then be staked to get SYRUP, which has extra utility as a governance token and can be used as tickets in different lotteries.
CAKE holders are given a fixed quantity of CAKE for each built block, and users can stake them to earn incentives. CAKE is distributed as BEP20 tokens to those offering liquidity to the network, and users may earn 170 percent APY by staking CAKE in the pool. Users need a Metamask wallet or a Binance Chain Wallet with both CAKE and (Binance Coin or BNB) to pay for gas on the exchange to stake CAKE.
Users can begin staking by following these steps:
One of the primary reasons users may be tempted to PancakeSwap is its lower fees compared to other DEXs. You’ll be charged a 0.25% trading fee for swapping a token on PancakeSwap. Surprisingly, a large portion of trading fees is refunded to liquidity providers, incentivizing them to offer liquidity to the platform.
The 0.25% transaction fee is distributed as follows:
Sent to the PancakeSwap Treasury – 0.03%
CAKE buyback and burn – 0.05%
Return to Liquidity Pools as an incentive for liquidity providers – 0.17%
Also, remember that certain tokens may have a “tax” on transfers or sales of the token, in addition to the fees mentioned above.
PancakeSwap’s perpetual futures market employs an off-chain order book and an on-chain settlement method, meaning that users must pay “maker” and “taker” fees. Trading fees are 0.02% of the notional amount for makers and 0.07% for takers. CAKE will be the default payment method for fees, followed by APX (ApolloX’s token) and USDT. Users who pay their trading fees in CAKE will receive a 5% reduction, equating to 0.019% for makers and 0.0665% for takers.
PancakeSwap platform exclusively accepts deposits and withdrawals from users who want to utilize PancakeSwap’s perpetual futures trading product. By depositing funds, you are granting the protocol permission to use your funds as collateral for any margin transactions you do. This collateral will be liquidated if you do not repay or close positions before certain critical price levels.
Currently, deposits are only accepted in USDT, BUSD, APX, or CAKE. To withdraw deposited funds, close any open trades and click the withdraw option under the assets tab.
Users of PancakeSwap have a variety of wallet options to select from, including MetaMask, MathWallet, WalletConnect, TokenPocket, and Trust Wallet. MetaMask is an ERC-20 wallet that can also be configured to hold BEP-20 assets.
You can also choose from several other wallets in the crypto market that you can connect to PancakeSwap.
PancakeSwap is an open-source project that has undergone many security assessments by Certik, Peckshield, and SlowMist. The official documentation lists a total of 9 security audits.
PancakeSwap also follows standard practices in security by employing multi-signature for all contracts and setting a time-lock option for them. Furthermore, for maximum transparency, the majority of PancakeSwap’s code is publicly available, and all of their contracts are checked on BscScan.
PancakeSwap does not have its own mobile app. Instead, you can access the PancakeSwap ecosystem on mobile by downloading several Android or iOS applications. Apps that are supported include WalletConnect, Trust Wallet, and Ledger Nano.
PancakeSwap doesn’t officially provide customer support for you to get in touch with. Users can access the troubleshooting page on the PancakeSwap website, which covers typical issues such as “price impact is too large” or “PancakeSwap router has expired,” as well as workarounds and an explanation of why they occurred.
While there is no official customer service, users can seek assistance from the community through the different chat rooms on Telegram and Discord. We found PancakeSwap’s Telegram more entertaining and responsive than its Discord Channel. However, be aware that you’ll be bombarded with ‘support lines’ and ‘customer service’ scammers claiming to be able to assist you with your problem. DO NOT PARTICIPATE IN THESE CHATS. The best thing to do is change your privacy settings to more favorable ones to block these calls from coming through.